By Motolani Oseni
Despite the economic challenges occasioned by the COVID-19 pandemic on businesses across the world, activities in the Nigerian private sector in August has improved as the Purchasing Managers’ Index (PMI) rose to 54.6 index points from 50.4 index points in July 2020.
In its Purchasing Managers’ Index (PMI) report, Stanbic IBTC Bank said: “The recovery in the Nigerian private sector gathered momentum in August as demand improved following the easing of restrictions related to the coronavirus disease.
“Output and new orders rebounded, rising sharply from July. Employment was broadly stable, although excess capacity remained as a result of the severe declines in new business during the second quarter.”
It explained further, that currency weakness led to another record increase in per- chase costs, in turn feeding through to a rise in selling prices unprecedented, since the survey began in January 2014.
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The Nigeria PMI report, published by Stanbic IBTC Bank Plc, reflects economic indicators gotten from monthly surveys of private sector companies and it is targeted at providing information about current business conditions to various stake- holders.
Readings above 50.0 indicate an improvement in business conditions while readings below 50.0 show a deterioration.
The report said that the reading signalled a marked improvement in business conditions, following a return to growth in the previous month, saying that the rebound in new orders continued midway through the third quarter as client demand strengthened following the easing of COVID-19 restrictions.